The Feldstein-Horioka puzzle in the presence of structural breaks: evidence from China
This study explores the empirical validity of the Feldstein-Horioka puzzle for China in the presence of structural breaks. As such, we employ a recently proposed multiple-break cointegration test. Once the existence of the cointegration between domestic savings and investment is ensured by allowing...
Gespeichert in:
| Veröffentlicht in: | Journal of the Asia Pacific economy 2018-07, Vol.23 (3), p.374-392 |
|---|---|
| Hauptverfasser: | , |
| Format: | Artikel |
| Sprache: | eng |
| Schlagworte: | |
| Online-Zugang: | Volltext |
| Tags: |
Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
|
| container_end_page | 392 |
|---|---|
| container_issue | 3 |
| container_start_page | 374 |
| container_title | Journal of the Asia Pacific economy |
| container_volume | 23 |
| creator | Yildirim, Dilem Orman, Ethem Erdem |
| description | This study explores the empirical validity of the Feldstein-Horioka puzzle for China in the presence of structural breaks. As such, we employ a recently proposed multiple-break cointegration test. Once the existence of the cointegration between domestic savings and investment is ensured by allowing for endogenous structural breaks, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation procedures are implemented to obtain reliable inferences. Empirical results reveal that the relationship between Chinese domestic savings and investment has undergone some major changes. More specifically, with the introduction of managed floating exchange rate regime, a substantial reduction is observed in the almost unitary saving retention coefficient of the fixed exchange rate period. Furthermore, the correlation has experienced a slight increase since 2009, which coincides with the worldwide protectionist policies adopted in the depth of the global financial crisis. |
| doi_str_mv | 10.1080/13547860.2017.1396640 |
| format | Article |
| fullrecord | <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2178086786</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sourcerecordid>2178086786</sourcerecordid><originalsourceid>FETCH-LOGICAL-c403t-93c8e21acac16d3c9057aa745461387adf544d0078531eec3c62fda8ad25e72c3</originalsourceid><addsrcrecordid>eNp9kEFLAzEQhYMoWKs_QQh43ppssknWk1KsFQQv1WuIyYRuu92sya7S_nq3tl49zcD73hvmIXRNyYQSRW4pK7hUgkxyQuWEslIITk7QiHJRZqXg6nTYBybbQ-foIqUVIVQxIkfofbEEPIPapQ6qJpuHWIW1wW2_29WAqwZ3g95GSNBYwMHj1MXedn00Nf6IYNbpDsNX5X5lH8MGT5dVYy7RmTd1gqvjHKO32eNiOs9eXp-epw8vmeWEdVnJrIKcGmssFY7ZkhTSGMkLLihT0jhfcO4IkapgFMAyK3LvjDIuL0Dmlo3RzSG3jeGzh9TpVehjM5zUOZWKKDH8PFDFgbIxpBTB6zZWGxO3mhK9r1D_Vaj3FepjhYPv_uCrGh_ixnyHWDvdmW0doo-msVXS7P-IHzHpeAQ</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2178086786</pqid></control><display><type>article</type><title>The Feldstein-Horioka puzzle in the presence of structural breaks: evidence from China</title><source>PAIS Index</source><source>Business Source Complete</source><creator>Yildirim, Dilem ; Orman, Ethem Erdem</creator><creatorcontrib>Yildirim, Dilem ; Orman, Ethem Erdem</creatorcontrib><description>This study explores the empirical validity of the Feldstein-Horioka puzzle for China in the presence of structural breaks. As such, we employ a recently proposed multiple-break cointegration test. Once the existence of the cointegration between domestic savings and investment is ensured by allowing for endogenous structural breaks, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation procedures are implemented to obtain reliable inferences. Empirical results reveal that the relationship between Chinese domestic savings and investment has undergone some major changes. More specifically, with the introduction of managed floating exchange rate regime, a substantial reduction is observed in the almost unitary saving retention coefficient of the fixed exchange rate period. Furthermore, the correlation has experienced a slight increase since 2009, which coincides with the worldwide protectionist policies adopted in the depth of the global financial crisis.</description><identifier>ISSN: 1354-7860</identifier><identifier>EISSN: 1469-9648</identifier><identifier>DOI: 10.1080/13547860.2017.1396640</identifier><language>eng</language><publisher>London: Routledge</publisher><subject>2008-2009 global financial crises ; capital mobility ; China ; Cointegration analysis ; Economic crisis ; Economic models ; Endogenous ; Estimation ; exchange rate regimes ; Feldstein-Horioka puzzle ; Fixed exchange rates ; Floating exchange rates ; Foreign exchange rates ; International finance ; Investments ; Savings ; structural breaks</subject><ispartof>Journal of the Asia Pacific economy, 2018-07, Vol.23 (3), p.374-392</ispartof><rights>2017 Informa UK Limited, trading as Taylor & Francis Group 2017</rights><rights>2017 Informa UK Limited, trading as Taylor & Francis Group</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c403t-93c8e21acac16d3c9057aa745461387adf544d0078531eec3c62fda8ad25e72c3</citedby><cites>FETCH-LOGICAL-c403t-93c8e21acac16d3c9057aa745461387adf544d0078531eec3c62fda8ad25e72c3</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,777,781,27847,27905,27906</link.rule.ids></links><search><creatorcontrib>Yildirim, Dilem</creatorcontrib><creatorcontrib>Orman, Ethem Erdem</creatorcontrib><title>The Feldstein-Horioka puzzle in the presence of structural breaks: evidence from China</title><title>Journal of the Asia Pacific economy</title><description>This study explores the empirical validity of the Feldstein-Horioka puzzle for China in the presence of structural breaks. As such, we employ a recently proposed multiple-break cointegration test. Once the existence of the cointegration between domestic savings and investment is ensured by allowing for endogenous structural breaks, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation procedures are implemented to obtain reliable inferences. Empirical results reveal that the relationship between Chinese domestic savings and investment has undergone some major changes. More specifically, with the introduction of managed floating exchange rate regime, a substantial reduction is observed in the almost unitary saving retention coefficient of the fixed exchange rate period. Furthermore, the correlation has experienced a slight increase since 2009, which coincides with the worldwide protectionist policies adopted in the depth of the global financial crisis.</description><subject>2008-2009 global financial crises</subject><subject>capital mobility</subject><subject>China</subject><subject>Cointegration analysis</subject><subject>Economic crisis</subject><subject>Economic models</subject><subject>Endogenous</subject><subject>Estimation</subject><subject>exchange rate regimes</subject><subject>Feldstein-Horioka puzzle</subject><subject>Fixed exchange rates</subject><subject>Floating exchange rates</subject><subject>Foreign exchange rates</subject><subject>International finance</subject><subject>Investments</subject><subject>Savings</subject><subject>structural breaks</subject><issn>1354-7860</issn><issn>1469-9648</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><recordid>eNp9kEFLAzEQhYMoWKs_QQh43ppssknWk1KsFQQv1WuIyYRuu92sya7S_nq3tl49zcD73hvmIXRNyYQSRW4pK7hUgkxyQuWEslIITk7QiHJRZqXg6nTYBybbQ-foIqUVIVQxIkfofbEEPIPapQ6qJpuHWIW1wW2_29WAqwZ3g95GSNBYwMHj1MXedn00Nf6IYNbpDsNX5X5lH8MGT5dVYy7RmTd1gqvjHKO32eNiOs9eXp-epw8vmeWEdVnJrIKcGmssFY7ZkhTSGMkLLihT0jhfcO4IkapgFMAyK3LvjDIuL0Dmlo3RzSG3jeGzh9TpVehjM5zUOZWKKDH8PFDFgbIxpBTB6zZWGxO3mhK9r1D_Vaj3FepjhYPv_uCrGh_ixnyHWDvdmW0doo-msVXS7P-IHzHpeAQ</recordid><startdate>20180703</startdate><enddate>20180703</enddate><creator>Yildirim, Dilem</creator><creator>Orman, Ethem Erdem</creator><general>Routledge</general><general>Routledge, Taylor & Francis Group</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7TQ</scope><scope>8BJ</scope><scope>DHY</scope><scope>DON</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20180703</creationdate><title>The Feldstein-Horioka puzzle in the presence of structural breaks: evidence from China</title><author>Yildirim, Dilem ; Orman, Ethem Erdem</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c403t-93c8e21acac16d3c9057aa745461387adf544d0078531eec3c62fda8ad25e72c3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2018</creationdate><topic>2008-2009 global financial crises</topic><topic>capital mobility</topic><topic>China</topic><topic>Cointegration analysis</topic><topic>Economic crisis</topic><topic>Economic models</topic><topic>Endogenous</topic><topic>Estimation</topic><topic>exchange rate regimes</topic><topic>Feldstein-Horioka puzzle</topic><topic>Fixed exchange rates</topic><topic>Floating exchange rates</topic><topic>Foreign exchange rates</topic><topic>International finance</topic><topic>Investments</topic><topic>Savings</topic><topic>structural breaks</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Yildirim, Dilem</creatorcontrib><creatorcontrib>Orman, Ethem Erdem</creatorcontrib><collection>CrossRef</collection><collection>PAIS Index</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of the Asia Pacific economy</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Yildirim, Dilem</au><au>Orman, Ethem Erdem</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>The Feldstein-Horioka puzzle in the presence of structural breaks: evidence from China</atitle><jtitle>Journal of the Asia Pacific economy</jtitle><date>2018-07-03</date><risdate>2018</risdate><volume>23</volume><issue>3</issue><spage>374</spage><epage>392</epage><pages>374-392</pages><issn>1354-7860</issn><eissn>1469-9648</eissn><abstract>This study explores the empirical validity of the Feldstein-Horioka puzzle for China in the presence of structural breaks. As such, we employ a recently proposed multiple-break cointegration test. Once the existence of the cointegration between domestic savings and investment is ensured by allowing for endogenous structural breaks, Fully Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) estimation procedures are implemented to obtain reliable inferences. Empirical results reveal that the relationship between Chinese domestic savings and investment has undergone some major changes. More specifically, with the introduction of managed floating exchange rate regime, a substantial reduction is observed in the almost unitary saving retention coefficient of the fixed exchange rate period. Furthermore, the correlation has experienced a slight increase since 2009, which coincides with the worldwide protectionist policies adopted in the depth of the global financial crisis.</abstract><cop>London</cop><pub>Routledge</pub><doi>10.1080/13547860.2017.1396640</doi><tpages>19</tpages></addata></record> |
| fulltext | fulltext |
| identifier | ISSN: 1354-7860 |
| ispartof | Journal of the Asia Pacific economy, 2018-07, Vol.23 (3), p.374-392 |
| issn | 1354-7860 1469-9648 |
| language | eng |
| recordid | cdi_proquest_journals_2178086786 |
| source | PAIS Index; Business Source Complete |
| subjects | 2008-2009 global financial crises capital mobility China Cointegration analysis Economic crisis Economic models Endogenous Estimation exchange rate regimes Feldstein-Horioka puzzle Fixed exchange rates Floating exchange rates Foreign exchange rates International finance Investments Savings structural breaks |
| title | The Feldstein-Horioka puzzle in the presence of structural breaks: evidence from China |
| url | https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-18T15%3A46%3A09IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=The%20Feldstein-Horioka%20puzzle%20in%20the%20presence%20of%20structural%20breaks:%20evidence%20from%20China&rft.jtitle=Journal%20of%20the%20Asia%20Pacific%20economy&rft.au=Yildirim,%20Dilem&rft.date=2018-07-03&rft.volume=23&rft.issue=3&rft.spage=374&rft.epage=392&rft.pages=374-392&rft.issn=1354-7860&rft.eissn=1469-9648&rft_id=info:doi/10.1080/13547860.2017.1396640&rft_dat=%3Cproquest_cross%3E2178086786%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2178086786&rft_id=info:pmid/&rfr_iscdi=true |